Blockchain platform Fantom plans to introduce version 2 of its fUSD stablecoin to provide a more predictable and budget-friendly system for builders, partners, and users, developers said in a post over the weekend. They have not provided a timeframe for release.
The new release will allow stakeholders to allocate costs in fantom (ftm) or fusd and predict future costs according to usage, the developers said. It will allow programmers to create additional institutional products for users and offer a more consistent system of grant planning and budgeting.
Stablecoins are tokens linked to fiduciary currencies, like the US dollar, and are often supported by a token or basket of other tokens.
Fantom users can use their FTM to mint fUSD and access decentralized finance (DeFi) applications built on the system, such as those for lending, trading and borrowing. Migration to the new merged will result in the liquidation of all positions where the merged debt equals or exceeds the MTF that supports it. The sell-off occurs when a trader does not have enough funds to maintain an open leverage position.
FUSD migration & liquidations https://t.co/vj4UAagaoX
— Andre Cronje (@AndreCronjeTech) January 29, 2023
To help users close out their positions, Fantom has built a swap tool that allows users to swap the DAI stablecoin to fUSD and settle their outstanding debt.